Marcus Just Placed a Stop Limit Order to Sell 100

question 31

Multiple Choice

Marcus just placed a stop limit order to sell 100 shares at $21 stop,$18 limit.Which one of the following statements is correct concerning this order if the current market price is $16?

• A)As soon as the price rises to $18, the stock will be sold.
• B)The stock will sell for at least $18 but less than $21.
• C)The stock will sell for $18 a share as soon as the price hits $21.
• D)The order will become a limit order to sell at $21 once the market price reaches $18.
• E)The order will become a limit order to sell at $18 once the market price reaches $21.

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Definitions:

Identified

Recognized or determined to be a particular entity or object, especially through specific characteristics or methods.

Transfer

The act of moving or passing an asset, title, right, or property from one party to another.

Signature

Under the Uniform Commercial Code, “any symbol executed or adopted by a party with a present intention to authenticate a writing.”

Time For Payment

The specific period designated for the remittance of funds owed under a contract or agreement.